Going through a foreclosure may be one of the most stressful experiences of your life. You may feel helpless, guilty, and embarrassed even though you are not alone. Many Americans are just a couple of missed paychecks away from the same financial disaster.
You may be wondering what your options are now that you have missed two or three house payments. You’re probably wondering, “can I sell my house to avoid foreclosure?”
The short answer is yes, but you may need to move quickly.
Contact a Clever Partner Agent who is an expert in quick-moving sales.
Before you decide to sell, it is essential to realize that you may have other choices. What are the alternatives that may allow you to keep your home if you are in a severe financial crunch? How can you avoid foreclosure? Let’s discuss a few of them.
Check to See if You Can Refinance
If you want to try to keep the property, reach out to your mortgage company to see if you can refinance your home loan.
Before you get too excited, this option is not very likely for homeowners who are behind several months on their mortgage payment.
It may be possible that you can qualify for a new mortgage with a lower interest rate that would allow for lower payments. You may also see if you can spread the life of your loan over a more extended period.
Getting a new home loan won’t make those missing payments disappear though, and there is also the issue of paying for the new loan’s closing costs.
Even though refinancing is not likely, when faced with a foreclosure, it doesn’t hurt to research all your options.
Sell Your Home Quickly
Selling your home is the most obvious way to avoid foreclosure, but many don’t think it’s even an option.
This option would be an especially good one if your home is worth more than you owe on it. If this is the case, you can sell the house, pay the bank what you owe from the equity you received from the sale, and then (hopefully) pocket the extra cash.
Sometimes people are so attached to their homes that they don’t want to even think of selling it. Some homeowners may believe that a miracle will happen at the last minute to stop foreclosure from occurring, just like what happens in the movies.
Sometimes financially stressed people live in denial of their situation.
Others may look at the condition of their homes and feel overwhelmed. They may wonder how their home will ever sell in its current state, and the homeowners may be too depressed or immobilized by stress to clean or fix broken items.
Even though you may not want to sell your beloved family home, and even if you think it will be a lot of work, contact your Clever Partner Agent. Our agents are empathetic and will walk you through the steps you need to take to sell your home.
They also know plenty of tricks of the trade to find a buyer quickly for your property.
Even though it may be difficult for you to let go, think about how relieved you will be to stop getting foreclosure notices in the mail. Think about your life in a new space. If you manage to avoid foreclosure, your credit report will thank you.
Ask About a Short Sale
What happens if you are upside down in your home? What should you do if you owe more for the house than what it is worth?
If this is the case, you need to talk with your mortgage company about a short sale. In a short sale, the lending company may agree to take less money to pay off your mortgage than the previous remaining balance on the loan.
Lenders prefer short sales to foreclosures. Before you miss your first payment reach out to your home loan specialist to see if this is an option for you. It will lower your credit score by as much as 125 points, but it will not hurt your financial standing as much as a foreclosure.
Ask About a Deed-in-Lieu of Foreclosure?
What is the difference between a deed-in-lieu of foreclosure agreement and the foreclosure process? During this process, which sometimes occurs alongside a short sale, the holder of the mortgage assumes ownership of your home.
It is not clear how this process is a benefit to the homeowner, as some experts say that the process hurts the credit score as much as an actual foreclosure. Others say that choosing this option over a foreclosure may allow you to obtain a new mortgage two or three years sooner than if you have a foreclosure on your financial record.
Lenders are sometimes hesitant to agree to this process, but it never hurts to ask if this is an option for you.
Reach Out for Help
In most cases, homeowners are protected from foreclosure until they are over 120 days delinquent the loan. If you look at your finances and know that you will not be able to dig yourself out of a hole in four-month’s time, reach out to a Clever Partner Agent today.
Be upfront with your agent. This is not the time to be wishy-washy or secretive. If you are in a hurry to sell, tell your agent so the agent can price the home appropriately.
We know that every penny of profit you can make on the sale of your house is important to you. That’s why our agents will work at a discounted commission rate.
Don’t wait another day suffering from indecision. Reach out to one of our agents now.